Aquisitions and Dispositions

9 Months Ended

Sep. 30, 2011

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

5.ACQUISITION, DISPOSITIONS AND IMPAIRMENTS

ACQUISITION

2010

Valley Electric Membership Corporation (Utility Operations segment)

In October 2010, SWEPCo purchasedcertain transmission and distribution assets of Valley Electric Membership Corporation (VEMCO) for approximately $102 millionand began serving VEMCO's 30,000 customers in Louisiana.

DISPOSITIONS

2010

Electric Transmission Texas LLC (ETT) (Utility Operations segment)

During the nine months ended September 30, 2010, TCC and TNC sold, at cost, $66 million and $73 million, respectively, of transmission facilities to ETT.

Intercontinental Exchange, Inc. (ICE) (All Other)

In April 2010, we sold our remaining 138,000 shares of ICE and recognized a $16 million gain. We recorded the gain in Interest and Investment Income on our condensed statements of income for the nine months ended September 30, 2010.

IMPAIRMENTS

2011

Muskingum River Plant Unit 5 FGD Project (MR5) (Utility Operations segment)

In September 2011, subsequent to the stipulation agreement filed with the PUCO, management determined that OPCo was not likely to complete the previously suspended MR5 projectand that the project's preliminary engineering costs were no longerprobable of being recovered. As a result, in the third quarter of 2011, OPCo recorded a pretax write-off of $42 million in Asset Impairments and Other Related Charges on the condensed statements of income.

Sporn Plant Unit 5(Utility Operations segment)

In the third quarter of 2011, management decided to no longer offer Sporn Unit 5 into the PJM market. Sporn Unit 5 is not expected to operate in the future, resulting in the removal of Sporn Unit 5 from the AEP Power Pool. As a result, in the third quarter of 2011, OPCo recorded a pretax write-off of $48 million in Asset Impairments and Other Related Chargeson the condensed statements of income.

Appalachian Power Co [Member]

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

5. ACQUISITIONS AND IMPAIRMENTS

ACQUISITIONS

2011

Dresden Plant - Affecting APCo

In August 2011, APCo purchased the partially completed Dresden Plant from AEGCo, at cost, for $302 million. The Dresden Plant is located near Dresden, Ohio and is a natural gas, combined cycle power plant. When completed, the Dresden Plant will have a generating capacity of 580 MW.

Ohio Power Co [Member]

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

IMPAIRMENTS

2011

Muskingum River Plant Unit 5 FGD Project(MR5)– Affecting OPCo

In September 2011, subsequent to the stipulation agreement filed with the PUCO, management determined that OPCo was not likely to complete the previously suspended MR5 project and that the project's preliminary engineering costs were no longer probable of being recovered. As a result, in the third quarter of 2011, OPCo recorded a pretax write-off of $42 million in Asset Impairments and Other Related Charges on the condensed statements of income.

Sporn Plant Unit 5 – Affecting OPCo

In the third quarter of 2011, management decided to no longer offer Sporn Unit 5 into the PJM market. Sporn Unit 5 is not expected to operate in the future, resulting in the removal of Sporn Unit 5 from the AEP Power Pool. As a result, in the third quarter of 2011, OPCo recorded a pretax write-off of $48 million in Asset Impairments and Other Related Charges on the condensed statements of income.

Southwestern Electric Power Co [Member]

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

5. ACQUISITIONS AND IMPAIRMENTS

ACQUISITIONS

2010

Valley Electric Membership Corporation – Affecting SWEPCo

In October 2010, SWEPCo purchased certain transmission and distribution assets of Valley Electric Membership Corporation (VEMCO) for approximately $102 million and began serving VEMCO's 30,000 customers in Louisiana.